So I am just Paper Trading right now with the software Thinkorswim from Ameritrade. Other than the fact that I just fool around with the software to see how it works I do try to trade a little bit. The question I have is this I was just trading Citigroup Internation got in at 55.89 (but the issue was that my AVG price said 55.77) and sold at 55.92 (but said i sold at 55.78) . Could someone explain this to me. Could it be market Lag because I am paper trading or is there something I am not understanding.
The quotes on the paper trading software are behind by 15 or 20 minutes. If you place a MARKET buy or sell price, they'll go through at the ACTUAL price, not the delayed prices you are seeing. To compensate in paper trading, you could always place LIMIT orders instead of MARKET orders. This will make sure you get the price you want.
First off - Happy New Year to everyone! Now for my (newbie) short question. Have never played a stock short but have been rethinking this one because would like to make money on both sides and have been playing a few like DRYS on paper and really wish i had actually done it!! in any event, let's say i had opened a short position then can you keep it open for a couple days or do you have to get out within a certain time frame? TIA
Happy belated new year! A short position can be opened indefinitely UNLESS your margin account falls below a certain value. Here's an article on the exact topic: http://www.investopedia.com/ask/answers/12/how-long-short-sell.asp
thanks torm and good to know you can swing a short position too and just want to confirm my understanding. So only way broker can force you to close a short position is if account value and/or you don't have enough cash in margin account to cover short position that falls below the value, yes?
still learning some things obviously and asked this in daily thread and asking here too. Have seen wide spreads on low floats without much volume but why does one with volume have a wide spread? Thanks.
